Book contents
- Frontmatter
- Contents
- Preface
- Acknowledgments
- PART I The Basic Model
- PART II Changes in the Rate of Change
- 11 The Setting of the Problem
- 12 A Bird's-Eye View of an Expanding Traverse
- 13 On the Short-Period Variability of the Capital–Labor Ratio
- 14 Adjustment to a Higher Rate of Growth of Labor Supply in a Free Market. I. Structure Analysis
- 15 Adjustment to a Higher Rate of Growth of Labor Supply in a Free Market. II. Force Analysis
- 16 Adjustment to a Higher Rate of Growth of Labor Supply in a Collectivist System
- 17 Some Comments on the Role of Working Capital in the Traverse
- 18 Instrumental Analysis of Decline in the Rate of Growth of Labor Supply
- PART III Changes in the Rate of Change
- PART IV Changes in the Rate of Change
- Appendix: An Alternative Presentation of Lowe's Basic Model
- Glossary of Recurring Symbols
- Name Index
- Subject Index
15 - Adjustment to a Higher Rate of Growth of Labor Supply in a Free Market. II. Force Analysis
Published online by Cambridge University Press: 07 October 2011
- Frontmatter
- Contents
- Preface
- Acknowledgments
- PART I The Basic Model
- PART II Changes in the Rate of Change
- 11 The Setting of the Problem
- 12 A Bird's-Eye View of an Expanding Traverse
- 13 On the Short-Period Variability of the Capital–Labor Ratio
- 14 Adjustment to a Higher Rate of Growth of Labor Supply in a Free Market. I. Structure Analysis
- 15 Adjustment to a Higher Rate of Growth of Labor Supply in a Free Market. II. Force Analysis
- 16 Adjustment to a Higher Rate of Growth of Labor Supply in a Collectivist System
- 17 Some Comments on the Role of Working Capital in the Traverse
- 18 Instrumental Analysis of Decline in the Rate of Growth of Labor Supply
- PART III Changes in the Rate of Change
- PART IV Changes in the Rate of Change
- Appendix: An Alternative Presentation of Lowe's Basic Model
- Glossary of Recurring Symbols
- Name Index
- Subject Index
Summary
In discussing stationary and dynamic equilibrium, we set forth the reasons why instrumental analysis remains incomplete unless the study of economic structures is supplemented by the determination of the behavioral and motivational patterns that support the structure in question – in a word, by force analysis. In particular it was shown that force analysis gains special importance in free market systems owing to their social organization. What then are the motorial requirements for a targeted traverse such as the one explored in the preceding chapter?
We know that market behavior must ultimately orient itself by the variations of prices and of demand and supply quantities in both the commodity and factor markets. We also know that the signals from such variations issue from the prevailing micromotivations: action directives and expectations. Therefore, our task is now to establish those price and quantity patterns and those patterns of the underlying motivational forces that are suitable to guide the system along the contorted path that raises it to a higher rate of growth.
When first taking up the motorial issues arising in a free market, we designed two behavioral models that displayed alternative processes assuring the stability of stationary equilibrium. These models, modified by what was subsequently discovered about the stability conditions of dynamic equilibrium, will play a major role in explaining the behavioral and motivational patterns required for an efficient adjustment of the system to a change in the rate of growth.
- Type
- Chapter
- Information
- The Path of Economic Growth , pp. 146 - 167Publisher: Cambridge University PressPrint publication year: 1976